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Average Office Rent Per Sq Ft in Dubai by District: 2025 Snapshot

In 2025, the average office rent in Dubai typically ranges from AED 80 per sq ft in secondary districts to over AED 450 per sq ft in prime Free Zones like the DIFC. This variance is driven by factors such as licensing jurisdiction (Mainland vs. Free Zone), building classification (Grade A vs. Grade B), and the fit-out status of the unit. As demand for premium commercial space outstrips supply, businesses must navigate these price differentials carefully to secure a strategic location.

The 2025 Commercial Market Overview

The Dubai commercial real estate market has entered 2025 with robust momentum. Driven by an influx of multinational corporations and a thriving startup ecosystem, the demand for high-quality office space is at a historic high. While residential markets often grab the headlines, the commercial sector is the backbone of the city’s economic expansion.

For business owners and operations managers, understanding the “cost per square foot” is more than just a budgeting exercise—it is about positioning your brand. A strategic location can enhance recruitment, improve client perception, and provide access to vital infrastructure. However, the market is not uniform. We are seeing a “two-tier” market where Grade A sustainable buildings in prime locations command a significant premium, while older stock in secondary locations offers value for cost-conscious firms.

Whether you are looking for properties for rent in Dubai to house your growing team or seeking an asset purchase, having a clear breakdown of district pricing is essential for making an informed decision.

Price Breakdown by Key Business Districts

The following sections analyze the rental rates across Dubai’s most prominent business hubs. These figures represent the average asking rents for 2025, though final transaction prices can vary based on negotiation and lease terms.

Prime Free Zones: DIFC and Dubai Media City

The Dubai International Financial Centre (DIFC) remains the undisputed heavyweight of the commercial market. It is the hub for global finance, law, and consultancy firms.

• Average Rent: AED 220 – AED 500+ per sq ft.

• Why the Premium? DIFC offers a unique legal framework based on English Common Law, world-class infrastructure, and high-end retail and dining options. Occupancy rates here are exceptionally tight, often exceeding 95%.

• Dubai Media City / Internet City: These technology and media hubs are slightly more affordable but still command premium rates due to the ecosystem they provide. Rents here typically hover between AED 160 – AED 240 per sq ft.

Prime Mainland: Downtown Dubai and Sheikh Zayed Road

For companies requiring a Mainland license to trade directly within the local UAE market, the corridor along Sheikh Zayed Road (SZR) and Downtown Dubai is the gold standard.

• Average Rent: AED 140 – AED 300 per sq ft.

• The Appeal: Visibility is the key driver here. An office in a tower like the Burj Khalifa or near the Museum of the Future offers immediate brand recognition. Accessibility is also a major plus, with the Dubai Metro serving the entire stretch.

• Market Trend: We are seeing a shortage of large, contiguous floor plates in this area, pushing prices upward for Grade A stock.

Established Business Hubs: Business Bay and JLT

These two districts offer the highest volume of office supply and act as the engine room for Dubai’s SMEs and mid-sized corporations.

• Business Bay:

  • Range: AED 100 – AED 180 per sq ft.

  • Context: Business Bay has matured significantly. It is no longer just a construction site but a thriving extension of Downtown. Premium towers like The Opus or Vision Tower command rates near the top of this range, while older strata-titled buildings offer entry-level pricing.

• Jumeirah Lake Towers (JLT):

  • Range: AED 80 – AED 160 per sq ft.

  • Context: A Free Zone (DMCC) distinct from DIFC, JLT is popular for trading commodities, tech startups, and general trading. It offers excellent value, metro connectivity, and a community feel.

Value & Traditional Districts: Deira and Bur Dubai

For businesses where a prestigious address is secondary to operational costs, or for those deeply embedded in traditional trading and logistics, “Old Dubai” remains vital.

• Average Rent: AED 50 – AED 90 per sq ft.

• The Trade-off: While rents are attractive, the building stock is older. Parking can be challenging, and modern amenities like high-speed elevators or smart building management systems may be lacking compared to New Dubai.

Comparative Price Snapshot (2025 Estimates)

Critical Factors Influencing Rent

When browsing properties for sale in Dubai or for rent, you will notice that two offices in the same neighborhood can have vastly different price tags. Here is why.

1. Shell & Core vs. Fitted

• Shell & Core: These units come with bare concrete floors and ceilings. They are cheaper to rent initially (often 15-20% lower) but require a massive upfront capital expenditure (CAPEX) to fit out.

• Fitted / Plug-and-Play: These are ready to move in. In 2025, fully furnished “plug-and-play” offices are commanding the highest premiums because companies want to avoid the 3-6 month delay associated with fit-outs.

2. Grade A vs. Grade B Buildings

A “Grade A” building features high-quality finishes, superior elevator speeds, LEED certification (sustainability), and professional facilities management. In contrast, Grade B buildings may be older or lack central cooling efficiency. In a competitive talent market, the quality of the building is a recruitment tool.

3. Single Ownership vs. Strata Title

Buildings owned by a single landlord (often institutional investors) tend to be better maintained and have a cohesive tenant mix. “Strata” buildings, where each office is owned by a different individual, can suffer from inconsistent maintenance and varying lease terms. Our property management experts often advise corporate clients to prioritize single-landlord assets for long-term stability.

Hidden Costs Beyond the Base Rent

A common pitfall for new market entrants is calculating the budget based solely on the base rent per square foot. To get an accurate figure of your occupancy cost, you must factor in the following:

1. Service Charges: These cover the maintenance of common areas, security, and cleaning. In prime towers, this can range from AED 25 to AED 45 per sq ft, payable on top of the rent.

2. Chiller Fees: In many Dubai towers, air conditioning (chiller) is charged separately based on consumption or strictly by sq ft.

3. VAT: Commercial rent is subject to a 5% Value Added Tax.

4. Ejari & Marketing Fees: Registering the lease with the Dubai Land Department (Ejari) incurs a government fee. Additionally, agency fees are typically 5% to 10% of the first year’s rent.

5. Security Deposit: Usually 5% for unfurnished and 10% for furnished offices, refundable at the end of the term.

Strategic Advice for Tenants and Investors

Navigating the Dubai commercial market requires agility. The vacancy rate in Grade A buildings is currently at single-digit lows in prime areas. This shifts the leverage toward landlords, making negotiation harder but not impossible.

For Tenants

• Start Early: Begin your search 6 months before your current lease expires.

• Check the Power Load: If you run a tech-heavy operation, ensure the server room cooling and electrical load capacity of the unit are sufficient before signing.

• Review the reinstatement clause: Most leases require you to return the office to its original “shell and core” state when you leave. This is a significant future cost to keep in mind.

For Investors

Commercial real estate offers attractive yields, often between 6% and 9%, which is generally higher than residential yields. With the influx of businesses, buying an office in Business Bay or JLT to lease out is a solid strategy. We recommend looking at our off-plan projects in Dubai to identify upcoming commercial towers that offer payment plans, allowing you to enter the market before capital appreciation peaks upon handover.

Why Partner with West Gate Dubai

Finding the right office space is not just about scrolling through listings; it is about uncovering off-market opportunities and understanding the nuances of lease structures. At West Gate Dubai, we bridge the gap between commercial requirements and market realities.

Our approach is data-driven and client-centric. We do not just find you a space; we analyze the total cost of ownership, commute times for your employees, and the long-term viability of the district. Furthermore, for landlords, we offer comprehensive services to ensure your asset retains its value and attracts high-quality tenants. You can maximize your ROI by engaging our dedicated property management team, who handle everything from tenant screening to maintenance coordination.

Whether you are a multinational firm seeking a regional HQ in DIFC or a startup looking for a creative loft in Al Quoz, we have the inventory and the expertise to support your vision.

Note: We have a lot more properties available than what is listed online. Please fill the form to be contacted by a professional agent: Contact Us Today.

FAQs

Q: What is the difference between “fitted” and “shell and core” offices?

A: Shell and core units are bare concrete spaces that require the tenant to install flooring, ceilings, partitions, and electrical distribution. Fitted offices are finished with flooring and ceilings, and sometimes partitions, allowing for a much faster move-in process.

Q: Are utility bills included in the rent per sq ft?

A: Typically, no. The rent per sq ft usually covers the space itself. Service charges are often separate (or listed as “gross rent” if included), while electricity, water (DEWA), and chiller fees are usually paid by the tenant based on consumption.

Q: Can a Mainland company rent an office in a Free Zone?

A: Generally, Mainland companies must lease space within the Mainland jurisdiction to comply with their Department of Economy and Tourism (DET) license. However, some Free Zones like TECOM (Dubai Media City, Internet City) have dual-licensing frameworks, but you should always verify with a legal expert or the Dubai Economy regulations before signing.

Q: How long is a typical commercial lease in Dubai?

A: The standard commercial lease term is one year, renewable. However, for larger corporate offices, it is common to negotiate 3 to 5-year leases to lock in the rental rate and amortize the cost of fit-out work over a longer period.

Take the Next Step

Securing the right office at the right price can define your business’s trajectory for the year ahead. Do not leave your commercial strategy to chance. Whether you need a detailed valuation, a lease negotiation expert, or a portfolio management strategy, West Gate is here to help.

Visit our Contact Us page to schedule a consultation with a commercial real estate specialist today.